IBPS SO Professional Knowledge - Law Officer (Scale I) Syllabus

Under the Indian Contract Act, what is a 'pledge' and who are the parties?

Pledge (Sec 172) is the bailment of goods as security for payment of a debt or performance of a promise. The bailor is the 'pawnor' and the bailee is the 'pawnee'. Possession of goods is transferred.

Distinguish between pledge, hypothecation, and mortgage as forms of security.

Pledge: movable goods, possession with creditor. Hypothecation: movable goods, possession remains with borrower (charge created). Mortgage: immovable property given as security under the Transfer of Property Act.

What is a 'mortgage' under Section 58 of the Transfer of Property Act, 1882?

The transfer of an interest in specific immovable property for the purpose of securing the payment of money advanced or to be advanced by way of loan, an existing or future debt, or performance of an engagement giving rise to a pecuniary liability.

Name the main types of mortgage recognised under the Transfer of Property Act.

Simple mortgage, mortgage by conditional sale, usufructuary mortgage, English mortgage, mortgage by deposit of title deeds (equitable mortgage), and anomalous mortgage.

What does the SARFAESI Act, 2002 stand for and what is its main purpose?

Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act; it enables banks/FIs to enforce security interest and recover NPAs without court intervention by taking possession of secured assets.

Under Section 13(2) of the SARFAESI Act, what notice period must a secured creditor give the borrower before enforcement?

A 60-day notice must be given to the borrower to discharge the liability after the account is classified as a Non-Performing Asset (NPA); on default, the creditor can take possession of the secured asset under Section 13(4).

What is the minimum loan default amount required for SARFAESI Act to be invoked, and is it applicable to agricultural land?

SARFAESI applies where the secured debt is more than Rs. 1 lakh and the default exceeds 20% of principal and interest; it does NOT apply to agricultural land.

What does DRT stand for, and which Act established the Debt Recovery Tribunals?

DRT = Debts Recovery Tribunal, established under the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (RDDBFI Act / RDB Act). Appeals go to the Debts Recovery Appellate Tribunal (DRAT).

What is the minimum amount of debt for which a bank can approach a DRT under the RDDBFI Act?

Rs. 20 lakh or more (the jurisdiction of DRTs applies to debts of 20 lakh and above).

What does the Insolvency and Bankruptcy Code (IBC), 2016 aim to do, and who is the regulator?

It provides a consolidated, time-bound framework for resolution/insolvency of corporate persons, partnerships and individuals to maximise asset value. The regulator is the Insolvency and Bankruptcy Board of India (IBBI).

Under the IBC, what is the maximum time period for completion of the Corporate Insolvency Resolution Process (CIRP)?

330 days including litigation/extensions (originally 180 days, extendable by 90 days, with an overall ceiling of 330 days).

Under the IBC, what is the role of the 'Committee of Creditors' (CoC) and the Resolution Professional (RP)?

The CoC, comprising financial creditors, decides on the resolution plan (approval needs 66% voting share). The RP manages the corporate debtor as a going concern during CIRP and runs the process under IBBI/NCLT oversight.

Which tribunals adjudicate insolvency under the IBC for companies and for individuals/partnerships?

NCLT (National Company Law Tribunal) for corporate persons (appeals to NCLAT); DRT (Debts Recovery Tribunal) for individuals and partnership firms (appeals to DRAT).

Under the Companies Act, 2013, what is the minimum and maximum number of members for a private company and a public company?

Private company: minimum 2, maximum 200 members. Public company: minimum 7 members, no maximum limit.

What is a 'One Person Company' (OPC) introduced under the Companies Act, 2013?

A company incorporated with only one person as a member (with a nominee), combining the benefits of a sole proprietorship and a company with limited liability and separate legal personality.

Under the Indian Partnership Act, 1932, is registration of a partnership firm compulsory, and what is the effect of non-registration?

Registration is optional but an unregistered firm cannot file a suit to enforce a contractual right against a third party or among partners; it suffers legal disabilities under Section 69.

What is an LLP and which Act governs it; how does liability differ from a general partnership?

LLP = Limited Liability Partnership, governed by the LLP Act, 2008. It is a separate legal entity with perpetual succession; partners' liability is limited to their agreed contribution, unlike unlimited liability in a general partnership.

What does the Prevention of Money Laundering Act (PMLA), 2002 aim to prevent, and which agency enforces it?

It aims to prevent money laundering and provides for confiscation of property derived from laundering. It is enforced by the Enforcement Directorate (ED); the Financial Intelligence Unit-India (FIU-IND) receives reports.

Under PMLA/KYC norms, what are the three core components of the KYC framework for banks?

Customer Acceptance Policy, Customer Identification Procedures (CIP), and ongoing Monitoring of Transactions (along with Risk Management).

Under PMLA rules, what reports must banks file with FIU-IND and what is the CTR threshold?

Cash Transaction Reports (CTR) for cash transactions above Rs. 10 lakh (or series in a month), Suspicious Transaction Reports (STR), Counterfeit Currency Reports (CCR), and Non-Profit Organisation Transaction Reports (NTR).

Under the Limitation Act, 1963, what is the general period of limitation for a suit to recover money lent (a simple money debt)?

Three years from the date the loan is made or the cause of action arises (suits based on contract generally have a 3-year limitation).

Under the Limitation Act, what is the limitation period for the enforcement of a mortgage / suit for foreclosure or sale of mortgaged property?

Twelve years for suits relating to immovable property and enforcement of mortgages (e.g., suit for sale/foreclosure of mortgaged property).

Under the Transfer of Property Act, what is the doctrine of 'lis pendens' (Section 52)?

During the pendency of a suit in which any right to immovable property is in question, the property cannot be transferred or dealt with so as to affect the rights of any party under any decree made in the suit.

What does FEMA, 1999 regulate, and what major statute did it replace?

The Foreign Exchange Management Act regulates foreign exchange transactions, external trade, and payments to facilitate orderly forex markets; it replaced the Foreign Exchange Regulation Act (FERA), 1973, shifting from control to management.

Under FEMA, distinguish between 'current account transactions' and 'capital account transactions'.

Current account transactions (trade, services, income) are generally freely permitted with some restrictions. Capital account transactions (those altering assets/liabilities outside/inside India, e.g., investments, loans) are regulated by RBI and generally restricted unless permitted.

Which Articles of the Constitution of India guarantee the Right to Equality and the Right to Constitutional Remedies?

Right to Equality: Articles 14-18. Right to Constitutional Remedies: Article 32 (Supreme Court) — called the 'heart and soul' of the Constitution by Dr. Ambedkar; Article 226 empowers High Courts.

Name the five types of writs that can be issued under Articles 32 and 226 of the Constitution.

Habeas Corpus, Mandamus, Prohibition, Certiorari, and Quo Warranto.

What does the writ of 'Habeas Corpus' and the writ of 'Mandamus' command, respectively?

Habeas Corpus ('to have the body') directs a person/authority to produce a detained person before the court to test the legality of detention. Mandamus ('we command') directs a public authority to perform a public/legal duty it has failed to perform.

Under the Information Technology Act, 2000, what is the legal recognition given to electronic records and digital/electronic signatures?

The IT Act gives legal recognition to electronic records and digital/electronic signatures, making them valid and admissible; it provides for authentication of electronic records and addresses cybercrimes and data protection.

Under the Right to Information Act, 2005, what is the normal time limit for a Public Information Officer (PIO) to provide information, and the special limit for life/liberty cases?

Information must normally be provided within 30 days of the request; where the information concerns the life or liberty of a person, it must be provided within 48 hours.

Under the Indian Evidence Act, distinguish between 'examination-in-chief', 'cross-examination', and the burden of proof in civil vs criminal cases.

Examination-in-chief is by the party calling the witness; cross-examination is by the adverse party; re-examination follows. Burden of proof: in criminal cases the prosecution must prove guilt 'beyond reasonable doubt', while in civil cases it is decided on 'preponderance of probabilities'.